Reuters has an interesting report on falling profits in the digital camera industry, particularly at the entry-level end of the market, as prices are slashed to remain competitive. Bad news for the manufacturers, good news for us consumers.

“Even makers with hit products have fallen on hard times. Nikon Corp. is making money on a new digital SLR launched in March, but still expects profits in its camera division to fall as prices of compact models slide.

“We expect prices to keep falling. But we are shifting our product line-up towards the high end,” said Nikon Chief Financial Officer Kenji Enya.

The problem with that strategy is that every digital camera company is doing the same thing: avoid the low-end of the market where price competition has made margins razor-thin.”

Website: Reuters - Profits fading in digital camera industry